Scope and Payment of Tax Chapter- 05
an officer Inland Revenue shall, after a notice to show cause to such person, make an
order for assessment of tax, including imposition of penalty and default surcharge in
accordance with section 33 and 34:
However if in the above case a person files the return after the due date and pays the
amount of tax payable along with default surcharge and penalty, the notice to show cause
and the order of assessment shall abate.
2 - If a person has not paid the tax due on supplies made by him or has made short payment
or has claimed input tax credit or refund which is not admissible under this Act for reasons
other than those specified as above,
An officer Inland Revenue shall, after a notice to show cause to such person, make an
order for assessment of tax actually payable by that person or determine the amount of tax
credit or tax refund which he has unlawfully claimed and shall impose a penalty and
charge default surcharge in accordance with section 33 and 34.
3 - Where by reason of some collusion or a deliberate act any tax or charge has not been
levied or made or has been short-levied or has been erroneously refunded, the person
liable to pay any amount of tax or charge or the amount of refund erroneously made.
shall be served with a notice requiring him to show cause for payment of the amount
specified in the notice.
4 - Where, by reason of any inadvertence, error or misconstruction, any tax or charge has not
been levied or made or has been short-levied or has been erroneously refunded, the
person liable to pay the amount of tax or charge or the amount of refund erroneously
made
shall be served with a notice requiring him to show cause for payment of the amount
specified in the notice:
Provided that, where a tax or charge has not been levied as above, the amount of tax shall
be recovered as tax fraction of the value of supply.
4A- Where any person, required to withhold sales tax under the provisions of this Act or the
rules made there under, fails to withhold the tax or withholds the same but fails to deposit
the same in the prescribed manner, an officer of Inland Revenue shall after a notice to
such person to show cause, determine the amount in default.
5 - No order under this section shall be made by an Officer Inland Revenue unless a notice to
show cause is given within 5 years, end of the financial year in which the relevant date
falls, to the person in default specifying the grounds on which it is intended to proceed
against him and the officer of Sales Tax shall take into consideration the representation
made by such person and provide him with an opportunity of being heard:
Provided that order under this section shall be made within 120 days of issuance of show
cause notice or within such extended period as the CIR may, for reasons to be recorded in
writing, fix provided that such extended period shall in no case exceed 90 days:
Provided further that any period during which the proceedings are adjourned on account
of a stay order or Alternative Dispute Resolution proceedings or the time taken through
adjournment by the petitioner not exceeding 60 days shall be excluded from the
computation of the period specified above.
(6) Where a registered person fails to file a return, an Officer Inland Revenue not below the
rank of Assistant Commissioner shall subject to such conditions as specified by the Board,
determine the minimum tax liability of the registered person.
(7) For this section, the expression "relevant date" means--
(a) the time of payment of tax or charge as provided u/s 6; and
(b) in a case where tax or charge has been erroneously refunded, the date of its refund.13 .1 Short paid amounts recoverable without notice [U/S 11A]